Reference no: EM131810138
Problem - During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping, completed the following transactions:
July 1 Began business by making a deposit in a company bank account of $24,000, in exchange for 4,800 shares of $5 par value common stock.
July 1 Paid the premium on a one-year insurance policy, $2,400.
July 1 Paid the current month's rent, $2,080.
July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was placed on account. Payments will be $400.00 per month for nineteen months. The first payment is due 8/1. Note: Use Accounts Payable for the Balance Due.
July 8 Purchased landscaping supplies from Lakeside Company on credit, $780.
July 12 Paid utility bill for July, $308.
July 16 Received cash for landscaping revenue for the first half of July, $2,724.
July 19 Made payment on account to Lakeside Company, $400.
July 31 Received cash for landscaping revenue for the last half of July, $2,620.
July 31 Declared and paid cash dividend of $1,600.
Requirement 1: Prepare journal entries to record the July transactions in the General Journal below.
Requirement 2: Post the July journal entries to the following T-Accounts and compute ending balances.
Requirement 3: Prepare a trial balance for July in the space below.
Requirement 4: Prepare adjusting entries using the following information in the General Journal below. Show your calculations!
a) One month's insurance has expired.
b) The remaining inventory of landscaping supplies is $388.
c) The estimated depreciation on landscaping equipment is $140.
d) The estimated income taxes are $80.
Requirement 5: Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. Just add to the balances that are already listed.
Requirement 6: Prepare an Adjusted Trial Balance in the space below.
Requirement 7: Prepare the financial statements for Parkview Landscaping Corporation as of July 31 in the space below.
You will only be preparing the Income Statement, Statement of Retained Earnings and the Balance Sheet. The Statement of Cash Flows is a required Financial Statement, but is not required for this Project.
Requirement 8: Prepare the closing entries at July 31 in the General Journal below.
Hint: use the balances for each account which appear on the Adjusted Trial Balance for your closing entries.
Requirement 9: Post the closing entries to the General Ledger T-accounts and compute ending balances. Just add to the adjusted balances already listed.
Requirement 10: Prepare a post-closing trial balance as of July 31 in the space below.
Attachment:- Assignment.rar